The Organization for Economic Cooperation and Development (OECD) lowered today the growth expectations of the Peruvian economy to 1.7% in 2023, 9 tenths below the 2.6% forecast in November 2022.
As part of its “Launch of the OECD economic prospects” program, the multilateral panel pointed out that this drop responds to political tensions, weather events, high interest rates and inflation, which “will limit private consumption and investment.” in Peru for the rest of the year, as the World Bank also predicted the day before.
He also accused that the slow execution of the budget at the subnational government level will be an obstacle to public investment, although he highlighted that the recent package of measures extended from the Ministry of Economy and Finance (MEF) to promote it can, in part, compensate for this problem.
For the OECD, it is essential that the Andean country implement a tax reform to increase public revenue, in addition to raising tax collection to deal with a pressing improvement in infrastructure and the needs of the population.
On the other hand, the agency stated that the Central Reserve Bank (BCRP) should maintain its restrictive monetary policies to contain inflation, whose target range of 3% should be reached at the beginning of 2024.
As for 2024, the OECD estimates a growth of 2.9% that will be conditional on the results obtained at the end of this period.
Source: Larepublica
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